Down Payment Assistance


Some buyers with good credit but not enough savings are often barred from purchasing a new home.  There are many programs available to help new and existing homeowners.  Down payment assistance usually comes in two forms, grant money and community seconds.  The most common loan type that coincides with down payment assistance is FHA.

Grant money is money given to you with no payback required.  Sometimes there is a potential tax liability when you sell depending on whether your income has increased or family size has decreased but those instances are rare but worth researching before you decide on taking the grant money or not.

A community second, sometimes referred to as a soft second, is money that is lent to you to pay for your down payment, closing costs or both.  It is an additional lien placed on your home that may require a monthly payback or may not.  In most instances no payback is required if you keep the home a certain number of years.  It’s generally between five and nine years.  After that period, the second mortgage “dissolves” and is no longer a debt owed.  We’ve highlighted a few for you here but we will generally accept any reputable source.

Some down payment programs by area.


MSHDA (Michigan State Housing and Development Authority)
All of Michigan


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